Bill Text: NY A00939 | 2021-2022 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Provides a New York state residential property tax relief act for public education aid apportionment for certain school years; provides for the repeal of such provisions upon the expiration thereof.

Spectrum: Moderate Partisan Bill (Democrat 11-3)

Status: (Introduced - Dead) 2022-02-11 - print number 939b [A00939 Detail]

Download: New_York-2021-A00939-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           939

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                       (Prefiled)

                                     January 6, 2021
                                       ___________

        Introduced  by M. of A. JEAN-PIERRE, THIELE -- read once and referred to
          the Committee on Education

        AN ACT to amend the education law, in relation to providing a  New  York
          state  residential  property  tax  relief act for public education aid
          apportionment for certain school years; and providing for  the  repeal
          of such provisions upon the expiration thereof

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. This act shall be known and may be cited as the  "New  York
     2  state residential real property tax relief act for public education."
     3    §  2.  Legislative  findings.  The  legislature finds that the current
     4  primary and secondary education funding system, which is  based  largely
     5  upon  real property taxation, is antiquated and creates serious dispari-
     6  ties in educational opportunity and inequities with regard  to  distrib-
     7  ution  of  the  system's financial burden. The quality of education that
     8  children receive varies widely by geographic region, as does the  oppor-
     9  tunity  for  children  to participate in extracurricular activities.  In
    10  addition, taxpayers throughout the state receive real property tax bills
    11  from their local school districts based on the  value  of  their  homes,
    12  which  is  subject to multiple factors beyond their control, rather than
    13  their financial ability to pay, creating serious regional distortions in
    14  the relative cost of living. The  legislature  further  finds  that  our
    15  children  should  not be penalized based upon the geographic location of
    16  their home, nor should financial support for the educational system fall
    17  more heavily on those who are less able to bear the burden. The legisla-
    18  ture therefore must take immediate action to  provide  relief  to  those
    19  areas most impacted by these disparities through the residential proper-
    20  ty  tax  relief aid determined through a residential property tax relief
    21  aid formula. The legislature further orders an education  funding  study
    22  to  examine  long-term  funding  alternatives  for the state primary and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03525-01-1
        A. 939                              2

     1  secondary educational system that allows  all  children  throughout  the
     2  state to receive the same educational opportunities.
     3    §  3.  Section  3602  of  the education law is amended by adding a new
     4  subdivision 42 to read as follows:
     5    42. New York state residential property  tax  relief  act  for  public
     6  education. a. Eligibility. (1) Each school district shall be eligible to
     7  receive  a New York state residential property tax relief act for public
     8  education aid apportionment in the two thousand twenty-two--two thousand
     9  twenty-three school year, which shall equal the greater of: (i) the  sum
    10  of  the  tax  equalization aid apportionment, the tax limitation ceiling
    11  aid apportionment, and the wealth adjusted tax rate  aid  apportionment;
    12  or (ii) the residential property tax levy reduction apportionment.
    13    (2) Each school district shall be eligible to receive a New York state
    14  residential  property tax relief act for public education aid apportion-
    15  ment in the two thousand twenty-three--two thousand  twenty-four  school
    16  year in the same amount as in the base year.
    17    (3) Each school district shall be eligible to receive a New York state
    18  residential  property tax relief act for public education aid apportion-
    19  ment in the two thousand twenty-four--two  thousand  twenty-five  school
    20  year  in  an amount equal to the New York state residential property tax
    21  relief act for public education aid apportionment in  the  two  thousand
    22  twenty-three--two thousand twenty-four school year multiplied by one and
    23  seven hundred sixty-nine ten-thousandths (1.0769).
    24    b.  Purpose.  Funds  allocated  under this subdivision shall be solely
    25  used for the purpose of reducing the residential  tax  levy  defined  in
    26  subparagraph one of paragraph a of subdivision sixteen of this section.
    27    c. Tax equalization aid apportionment. (1) School districts other than
    28  districts  within  a  city  with a population of one hundred twenty-five
    29  thousand or more shall be eligible for a tax equalization aid apportion-
    30  ment if:  (i) the combined wealth ratio computed pursuant to paragraph c
    31  of subdivision three of this section is less  than  one;  and  (ii)  the
    32  expense  per pupil defined pursuant to paragraph f of subdivision one of
    33  this section is greater than the statewide average  expense  per  pupil.
    34  For  the two thousand twenty-two--two thousand twenty-three school year,
    35  for the purpose of computing  aid  pursuant  to  this  subdivision,  the
    36  statewide  average  expense  per  pupil  shall  be  sixteen thousand two
    37  hundred fifty dollars.
    38    (2) The tax equalization formula factor shall be equal to the positive
    39  difference of the quotient arrived at when dividing the approved operat-
    40  ing expense defined pursuant to paragraph t of subdivision one  of  this
    41  section  by total aidable pupil units defined pursuant to paragraph e of
    42  subdivision one of this section  minus  the  quotient  arrived  at  when
    43  dividing  the  total real property tax levy by total aidable pupil units
    44  defined pursuant to paragraph e of subdivision one of this section.
    45    (3) For eligible school districts, the tax  equalization  formula  aid
    46  apportionment shall be equal to the product of: (i) the tax equalization
    47  formula  factor  multiplied by (ii) the total aidable pupil units multi-
    48  plied by (iii) the regional cost index defined pursuant to  paragraph  a
    49  of  subdivision  four  of  this  section  multiplied by (iv) twenty-five
    50  hundredths (.25).
    51    d. Tax limitation ceiling  aid  apportionment.  (1)  School  districts
    52  other  than  districts  within  a  city with a population of one hundred
    53  twenty-five thousand or more shall be  eligible  for  a  tax  limitation
    54  ceiling aid apportionment if: (i) the combined wealth ratio is less than
    55  two  and five-tenths (2.5); and (ii) the tax effort ratio defined pursu-
    56  ant to subparagraph three of paragraph a of subdivision sixteen of  this
        A. 939                              3

     1  section  is greater than the statewide average tax effort ratio. For the
     2  two thousand twenty-two--two thousand twenty-three school year, for  the
     3  purpose of computing aid pursuant to this subdivision, the statewide tax
     4  average  effort  ratio  shall  be  two  thousand  eight hundred fourteen
     5  hundred thousandths (0.02814).
     6    (2) For purposes of this subdivision, the tax ceiling shall  be  equal
     7  to  the  product of (i) twenty-five dollars ($25) multiplied by (ii) the
     8  quotient arrived at when dividing the tax  effort  ratio  by  the  state
     9  average tax effort ratio.
    10    (3) The ceiling formula factor shall be equal to:
    11    (i)  thirty-three  dollars  and  eleven  cents ($33.11) for any school
    12  district with a tax ceiling greater than or equal to twenty-five dollars
    13  but less than forty dollars;
    14    (ii) forty-five dollars  and  sixty  cents  ($45.60)  for  any  school
    15  district  with  a tax ceiling greater than or equal to forty dollars but
    16  less than sixty dollars; and
    17    (iii) forty-seven dollars and fifty-two cents ($47.52) for any  school
    18  district with a tax ceiling greater than or equal to sixty dollars.
    19    (4)  For  eligible school districts, tax limitation ceiling aid appor-
    20  tionment shall be equal to the  product  of:  (i)  the  ceiling  formula
    21  factor,  multiplied by (ii) the regional cost index, multiplied by (iii)
    22  total aidable pupil units.
    23    e. Wealth adjusted aid apportionment. (1) School districts other  than
    24  districts  within  a  city  with a population of one hundred twenty-five
    25  thousand or more shall be eligible for a wealth adjusted aid  apportion-
    26  ment if:  (i) the combined wealth ratio is less than two and five tenths
    27  (2.5); and (ii) the quotient arrived at when dividing total general fund
    28  expenditure  by the total aidable pupil units expressed per one thousand
    29  dollars is greater than the statewide average of such  calculation.  For
    30  the  two thousand twenty-two--two thousand twenty-three school year, for
    31  the purpose of computing aid pursuant to this subdivision, the statewide
    32  total general fund expenditure divided  by  total  aidable  pupil  units
    33  expressed  per  one  thousand  dollars  shall be twenty dollars and five
    34  cents.
    35    (2) For eligible school districts, the wealth adjusted  tax  rate  aid
    36  apportionment  shall  be  equal  to  the  product  of: (i) seven hundred
    37  dollars ($700) multiplied by (ii) total aidable pupils units  multiplied
    38  by  (iii)  the  state  sharing ratio computed pursuant to paragraph g of
    39  subdivision three of this section.
    40    f. "Residential real property tax levy reduction  apportionment."  (1)
    41  School  districts  other than districts with a city with a population of
    42  one hundred twenty-five thousand or more, shall be eligible for residen-
    43  tial real property tax levy if: (i) the residential tax levy calculation
    44  is equal to or greater than fifty percent; and (ii) the combined  wealth
    45  ratio is less than two and five-tenths (2.5).
    46    (2)  "Residential  tax  levy  calculation"  shall  equal  the quotient
    47  arrived at when dividing the residential real property tax levy  defined
    48  pursuant  to  subparagraph  one of paragraph a of subdivision sixteen of
    49  this section divided by the  total  actual  expenditures  for  the  year
    50  commencing  in  the calendar year one year prior to the calendar year in
    51  which the base year began.
    52    (3) For eligible school districts, the "residential real property  tax
    53  levy  reduction  apportionment" shall mean the product of: (i) the posi-
    54  tive difference, if any, between the residential  tax  levy  calculation
    55  defined  pursuant to this subparagraph minus fifty percent multiplied by
    56  (ii) the residential real property tax levy.
        A. 939                              4

     1    g. Method of payment. Notwithstanding any other provision  of  law  to
     2  the contrary, the New York state residential property tax relief act for
     3  public  education  aid  shall  be  paid  pursuant  to section thirty-six
     4  hundred nine-i of this part.
     5    h.  Definition.  As used in this subdivision, "total real property tax
     6  levy" shall mean the total real  property  tax  levy  specified  in  the
     7  school  district budget for the year commencing in the calendar year two
     8  years prior to the calendar year in which the base year began. The final
     9  update of such data shall be reported by the  commissioner  of  taxation
    10  and  finance to the commissioner by February fifteenth of the base year.
    11  The commissioner of taxation and  finance  shall  adopt  regulations  as
    12  appropriate  to  assure  the  appropriate collection, classification and
    13  reporting of such data for the purposes  of  paying  state  aid  to  the
    14  schools.
    15    §  4.  The opening paragraph of subdivision 1 of section 3609-a of the
    16  education law, as amended by section 32 of part B of chapter 57  of  the
    17  laws of 2007, is amended to read as follows:
    18    The GSPS appropriation shall be used to support payments made pursuant
    19  to  this  section,  plus  apportionments  made pursuant to section seven
    20  hundred one,  seven  hundred  eleven,  seven  hundred  fifty-one,  seven
    21  hundred  fifty-three, thirty-two hundred two, thirty-six hundred nine-b,
    22  thirty-six hundred forty-one and forty-four hundred five of  this  chap-
    23  ter, any other applicable allocations made pursuant to this chapter, but
    24  not paid pursuant to the schedule prescribed by this section or sections
    25  thirty-six  hundred  nine-b,  thirty-six hundred nine-d [or], thirty-six
    26  hundred nine-f or thirty-six hundred nine-i of this [article] part; plus
    27  any unconsolidated law provisions which apply to  programs  funded  from
    28  such appropriation; plus any sums paid out upon audit of the state comp-
    29  troller  as  final  adjustments of apportionments originally claimed and
    30  payable pursuant to this subdivision in prior school  years;  plus  sums
    31  paid  out  as  prior  year  adjustments,  to the extent an allowance was
    32  included in such appropriation  for  such  purpose.  Any  apportionments
    33  provided  by  this chapter shall be paid in accordance with this section
    34  unless specifically exempted.
    35    § 5. The education law is amended by adding a new  section  3609-i  to
    36  read as follows:
    37    §  3609-i. Moneys apportioned to school districts for reimbursement of
    38  apportionments pursuant to the New York state residential  property  tax
    39  relief  act  for  public  education. 1. As used in this section, "school
    40  district" shall mean a public school district eligible for an apportion-
    41  ment of aid under subdivision four of section thirty-six hundred two  of
    42  this article.
    43    2.  Moneys apportioned to school districts for reimbursement of appor-
    44  tionments pursuant to the New York state residential property tax relief
    45  act for public education pursuant to subdivision  forty-two  of  section
    46  thirty-six hundred two of this part shall be disbursed as follows:
    47    a.  On  or  after  the first business day of July of each school year,
    48  commencing July first, two thousand twenty-two, a school district  shall
    49  be  paid  an  amount  equal  to fifty percent of the payments on October
    50  first of the current school year.
    51    b. The remaining balance shall be paid after February first,  provided
    52  that  the  amounts paid on or before February first shall not be subject
    53  to recalculation.
    54    c. No payment may be made  pursuant  to  this  subdivision  until  the
    55  amount  for  each  school  district  is certified by the commissioner of
    56  taxation and finance and transmitted to the commissioner.  Such  certif-
        A. 939                              5

     1  ication  shall  be  made  on or before January first so as to facilitate
     2  payments to be made pursuant to this section.
     3    3. Moneys paid pursuant to this section shall be payable to the treas-
     4  urer  of each city school district, and the treasurer of each union free
     5  school district and of each central school district and  of  each  other
     6  school  district, if there be a treasurer, otherwise to the collector or
     7  other disbursing officer of such  district,  who  shall  apply  for  and
     8  receive the same as soon as payable.
     9    4.  Any payment to a school district pursuant to this section shall be
    10  general receipts of the district  and  shall  be  used  solely  for  the
    11  reduction of the residential tax levy.
    12    5.  Notwithstanding  any  other  provision  of  law  to  the contrary,
    13  payments made to school districts under this section shall be considered
    14  general aid payments made pursuant to section thirty-six hundred  nine-a
    15  of this part.
    16    6.  It  is the intent of the governor to submit and of the legislature
    17  to enact for each fiscal year after  the  two  thousand  twenty-two--two
    18  thousand  twenty-three fiscal year in an annual budget bill an appropri-
    19  ation in the amount to be paid to school districts pursuant to  subdivi-
    20  sion forty-two of section thirty-six hundred two of this part.
    21    §  6.  Paragraph  a  of subdivision 7 of section 1608 of the education
    22  law, as amended by chapter 514 of the laws of 2016, is amended  to  read
    23  as follows:
    24    a.  Each  year,  commencing with the proposed budget for the two thou-
    25  sand--two thousand one school year, the trustee  or  board  of  trustees
    26  shall prepare a property tax report card, pursuant to regulations of the
    27  commissioner, and shall make it publicly available by transmitting it to
    28  local  newspapers  of general circulation, appending it to copies of the
    29  proposed budget made publicly available as required by  law,  making  it
    30  available  for distribution at the annual meeting, and otherwise dissem-
    31  inating it as required by  the  commissioner.  Such  report  card  shall
    32  include: (i) the amount of total spending and total estimated school tax
    33  levy  that  would  result  from  adoption of the proposed budget and the
    34  percentage increase or decrease in total spending and total  school  tax
    35  levy  from the school district budget for the preceding school year; and
    36  (ii) the district's tax levy limit determined pursuant  to  section  two
    37  thousand  twenty-three-a  of  this  title,  and the estimated school tax
    38  levy, excluding any levy necessary to support the expenditures  pursuant
    39  to  subparagraphs  (i) through (iv) of paragraph i of subdivision two of
    40  section two thousand twenty-three-a of this  title,  that  would  result
    41  from adoption of the proposed budget; and (iii) the projected enrollment
    42  growth  for  the  school  year for which the budget is prepared, and the
    43  percentage change in enrollment from the previous  year;  and  (iv)  the
    44  percentage increase in the consumer price index, as defined in paragraph
    45  c  of  this subdivision; and (v) the projected amount of the unappropri-
    46  ated unreserved fund balance that will be retained if the proposed budg-
    47  et is adopted, the projected amount of the reserved  fund  balance,  the
    48  projected amount of the appropriated fund balance, the percentage of the
    49  proposed  budget that the unappropriated unreserved fund balance repres-
    50  ents, the actual unappropriated unreserved fund balance retained in  the
    51  school district budget for the preceding school year, and the percentage
    52  of  the  school  district  budget for the preceding school year that the
    53  actual unappropriated unreserved fund balance represents[, and a  sched-
    54  ule  of  reserve  funds,  setting forth the name of each reserve fund, a
    55  description of its purpose, the balance as of the  close  of  the  third
    56  quarter of the current school district fiscal year and a brief statement
        A. 939                              6

     1  explaining any plans for the use of each such reserve fund for the ensu-
     2  ing  fiscal year]; and (vi) the amount of the New York state residential
     3  property tax relief act for public education amount used to  reduce  the
     4  residential tax levy for the ensuing fiscal year.
     5    §  7.  Paragraph  a  of subdivision 7 of section 1716 of the education
     6  law, as amended by chapter 514 of the laws of 2016, is amended  to  read
     7  as follows:
     8    a.  Each  year,  commencing with the proposed budget for the two thou-
     9  sand--two thousand one school year, the board of education shall prepare
    10  a property tax report card, pursuant to regulations of the commissioner,
    11  and shall make it publicly available by transmitting it to local newspa-
    12  pers of general circulation, appending it  to  copies  of  the  proposed
    13  budget  made  publicly available as required by law, making it available
    14  for distribution at the annual meeting, and otherwise  disseminating  it
    15  as required by the commissioner. Such report card shall include: (i) the
    16  amount  of total spending and total estimated school tax levy that would
    17  result from adoption of the proposed budget and the percentage  increase
    18  or  decrease in total spending and total school tax levy from the school
    19  district budget for the preceding school year; and (ii)  the  district's
    20  tax   levy   limit   determined   pursuant   to   section  two  thousand
    21  twenty-three-a of this title, and the estimated school tax levy, exclud-
    22  ing any levy necessary to support the expenditures pursuant to  subpara-
    23  graphs (i) through (iv) of paragraph i of subdivision two of section two
    24  thousand  twenty-three-a  of this title, that would result from adoption
    25  of the proposed budget; and (iii) the projected  enrollment  growth  for
    26  the  school  year  for  which the budget is prepared, and the percentage
    27  change in enrollment from the previous year;  and  (iv)  the  percentage
    28  increase  in the consumer price index, as defined in paragraph c of this
    29  subdivision; and (v) the projected amount of  the  unappropriated  unre-
    30  served  fund  balance  that  will  be retained if the proposed budget is
    31  adopted, the projected amount of the reserved fund balance, the project-
    32  ed amount of the  appropriated  fund  balance,  the  percentage  of  the
    33  proposed  budget that the unappropriated unreserved fund balance repres-
    34  ents, the actual unappropriated unreserved fund balance retained in  the
    35  school  district  budget  for  the preceding school year[, a schedule of
    36  reserve  funds,  setting  forth  the  name  of  each  reserve  fund,   a
    37  description  of  its  purpose,  the balance as of the close of the third
    38  quarter of the current school district fiscal year and a brief statement
    39  explaining any plans for the use of each such reserve fund for the ensu-
    40  ing fiscal year and the percentage of the school district budget for the
    41  preceding school year that the  actual  unappropriated  unreserved  fund
    42  balance  represents]; and (vi) the amount of the New York state residen-
    43  tial property tax relief act for public education amount used to  reduce
    44  the residential tax levy for the ensuing fiscal year.
    45    §  8. This act shall take effect immediately and shall apply to school
    46  years commencing on and after July 1, 2022; provided that the provisions
    47  of this act shall expire and be deemed repealed on July 1, 2025.  Effec-
    48  tive immediately, the addition, amendment and/or repeal of any  rule  or
    49  regulation necessary for the implementation of this act on its effective
    50  date are authorized to be made and completed on or before such effective
    51  date.